What will be the price of the 4 year bond

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Question

Consider three bonds with 5.90% coupon rates, all making annual coupon payments and all selling at face value. The short term bond has a maturity of 4 yrs, the intermediate-term bond has a maturity of 8 years, and the long-term bond has a maturity of 30 yrs.

a. What will be the price of the 4 year bond if its yield increases to 6.90%? Round 2 decimal points

Bond price

b. What will be the price of the 8-year bond if its yield increases to 6.90% Round 2 decimal places

Bond price

c. What will be the price of the 30-year bond if its yield increases to 6.90% Round 2 decimals

Bond price

d. What will be the price of the 4-year bond if its yield decreases to 4.90% Round 2 decimals

Bond price

e. What will be the price of the 8- year bond if its yield decreases to 4.90? Round 2 decimal places

Bond price

f. What will be the price of the 30-year bond if its yield decreases to 4.90% Round 2 decimal places

Bond price

Reference no: EM132370544

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